Page 171 - Juta's Indirect Tax

s 226 TAX ADMINISTRATION ACT 28 OF 2011 s 230
(b) the ‘default’ in respect of which the person wishes to apply for voluntary disclosure relief would not otherwise have been detected during the audit or investigation; and
(c) the application would be in the interest of good management of the tax system and the best use of SARS’ resources.
[Sub-s. (2) substituted by s. 65 of Tax Administration Laws Amendment Act, 2015 – date of commencement: date of promulgation of Tax Administration Laws Amendment Act, 2015.]
(c) be full and complete in all material respects;
(d) involve a behaviour referred to in column 2 of the understatement penalty percentage table in section
223;
[Para. (d) substituted by s. 66 of Tax Administration Laws Amendment Act, 2015 – date of commencement: date of promulgation of Tax Administration Laws Amendment Act, 2015.]
(e) not result in a refund due by SARS; and
(f) be made in the prescribed form and manner.
228 No-name voluntary disclosure
A senior SARS of cial may issue a non-binding private opinion, as de ned in section 75, as to a person’s eligibility for relief under this Part, if the person provides suf cient information to do so, which information need not include the identity of any party to the ‘default’.
229 Voluntary disclosure relief
Despite the provisions of a tax Act, SARS must, pursuant to the making of a valid voluntary disclosure by the applicant and the conclusion of the voluntary disclosure agreement under section 230—
[Words preceding para. (a) substituted (‘conclusions’ replaced by ‘conclusion’) by s. 67 (a) of Tax Administration Laws Amendment Act, 2015 – date of commencement: date of promulgation of Tax Administration Laws Amendment Act, 2015.]
(a) not pursue criminal prosecution for a tax offence arising from the ‘default’;
[Para. (a) substituted by s. 75 of Act 21 of 2012 – date of commencement deemed to have been 1 October 2012.]
(b) grant the relief in respect of any understatement penalty to the extent referred to in column 5 or 6 of the understatement penalty percentage table in section 223; and
(c) grant 100 per cent relief in respect of an administrative noncompliance penalty that was or may be imposed under Chapter 15 or a penalty imposed under a tax Act, excluding a penalty imposed under that Chapter or in terms of a tax Act for the late submission of a return.
[Para. (c) substituted by s. 67 (b) of Tax Administration Laws Amendment Act, 2015 – date of commencement: date of promulgation of Tax Administration Laws Amendment Act, 2015.]
Prelex
Wording of para. (d) in force until promulgation of Tax Administration Laws Amendment Act, 2015
(d) involve the potential imposition of an understatement
penalty in respect of the ‘default’;
Prelex
Wording of heading and sub-ss. (1) and (2) in force until promulgation of Tax Administration Laws Amendment Act, 2015
Qualifying person for voluntary disclosure
(1) A person may apply, whether in a personal, representative, withholding or other capacity, for voluntary disclosure relief, unless that person is aware of—
(a) a pending audit or investigation into the affairs of the person seeking relief; or
(b) an audit or investigation that has commenced, but has not yet been concluded.
(2) A senior SARS of cial may direct that a person may apply for voluntary disclosure relief, despite the provisions of subsection (1), where the of cial is of the view, having regard to the circumstances and ambit of the audit or investigation, that—
(a) the ‘default’ in respect of which the person wishes
to apply for voluntary disclosure relief would not otherwise have been detected during the audit or investigation; and
(b) the application would be in the interest of good management of the tax system and the best use of SARS’ resources.
(3) A person is deemed to be aware of a pending audit or investigation, or that the audit or investigation has commenced, if—
(a) a representative of the person;
(b) an of cer, shareholder or member of the person, if the
person is a company;
(c) a partner in partnership with the person;
(d) a trustee or bene ciary of the person, if the person is
a trust; or
(e) a person acting for or on behalf of or as an agent or
duciary of the person,
has become aware of a pending audit or investigation, or that the audit or investigation has commenced.
227 Requirements for valid voluntary disclosure
The requirements for a valid voluntary disclosure are that the disclosure must—
(a) be voluntary;
(b) involve a ‘default’ which has not occurred within ve
years of the disclosure of a similar ‘default’ by the
applicant or a person referred to in section 226 (3);
[Para. (b) substituted by s. 66 of Tax Administration Laws Amendment Act, 2015 – date of commencement: date of promulgation of Tax Administration Laws Amendment Act, 2015.]
Prelex
Wording of para. (c) in force until promulgation of Tax Administration Laws Amendment Act, 2015
(c) grant 100 per cent relief in respect of an
administrative non-compliance penalty that was or may be imposed under Chapter 15 or a penalty imposed under a tax Act, excluding a penalty imposed under that Chapter or in terms of a tax Act for the late submission of a return or a late payment of tax.
Prelex
Wording of para. (b) in force until promulgation of Tax Administration Laws Amendment Act, 2015 (b) involve a ‘default’ which has not previously
been disclosed by the applicant or a person referred to in section 226 (3);
230 Voluntary disclosure agreement
The approval by a senior SARS of cial of a voluntary disclosure application and relief granted under section 229, must be evidenced by a written agreement between SARS and the qualifying person who is liable for the
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